The following is a guest post by Susurrate. He's just like any ordinary guy out there but manage to save close to $19,000 in just one year. Here's his story and how he did it:
Hi fellow readers of SG Young Investment. Recently the Author has been writing about frugality and I guess I could write something as well.
Just a background information for you. I am currently 26 and single and I do go out and have fun with my friends. I come from a low income family, in fact, my parents are WorkFare Income Supplement recipients.
Through sheer hard work and frugality, my parents have supported my education up to a diploma. I am currently working full time earning a middle income and pursuing a part-time degree.
Being brought up in a low income family have allowed me to pick up frugal habits from my parents. Since young, I have been saving money to buy what I wanted instead of asking from my parents, so I guess that's how I learnt early the value of money.
While I earned more than my parents combined, I do not splurge on luxury or status. Because of this habit, I find myself spending little and have a lot more disposable income than what the media portrays.
Rather than telling people that they should do this and that, or they should not do this and that, I prefer to show than to tell. I have been tracking my expenses for the past 2 ½ years and these are the numbers as well as my take home pay for the year of 2014.
I'd say I'm fortunate to be in a company where my lunch is provided. I have a bento set everyday IF I opt in, instead of rushing and competing with the lunch crowd. I also prepare my breakfast at home and have dinner at home when I have nothing on after work. Clubbing and smoking are not my cup of tea as well.
So there you have it! A savings of $19,000 a year or almost $100,000 in 5 years for a middle income fellow, if I can keep this up (I could probably save more as I would no longer have expenses for my degree). Add another $15,000 in CPF contributions from my employment and I am $34,000 wealthier for the year.
If you notice, I spent more on things that matter, like parents' allowance and their medical check-ups and outpatient bills, my insurance policies, and building meaningful relationships with friends. I believe that being frugal is all about spending your money wisely, not wasteful spending.. I am grateful for everything I already have.
Lastly, I'd like to leave a quote,
"The rich man isn't the one who has the most, but rather the one who needs the least."
The guy is a friend whom I've known for the past few months. He's the same age as me and we're on the same journey to financial freedom.
Like him, I do not come from a rich family. I too studied part time for my degree and paid it up completely with the money I earned from my full time job. Even after paying for my school fees which is a five figure sum, my financial position is still healthy and I'm on the way to meet the target of 100k savings in 2 years time. I'll update my income and expenditure on a separate post as we approach the end of 2014.
What has your savings been like for the whole of 2014? Hope you enjoyed the chit chat post. There'll be more to come. Stay tuned!
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